Digital Reading Room 2.0 -- EEIM 665: The Energy Industries and Markets: Canada and Beyond

EEIM 665: The Energy Industries and Markets: Canada and Beyond Report a Broken Link

In this course, students will develop a broad understanding of the energy sector and energy markets from a business point of view. Energy markets are complex and influenced by many rapidly changing factors: technology development, global politics, new competitive pressures, regulation, and environmental challenges. The course will focus on how these external factors affect market conditions and on what business strategies are employed to deal with those effects.

Required Readings

Week 1

Reading 1: U.S. Energy Information Administration (2017). What is energy? Explained. https://www.eia.gov/energyexplained/index.cfm?page=about_home

Reading 2: American Petroleum Institute. (API). (2017). What is energy? http://www.api.org/oil-and-natural-gas/consumer-information/in-the-classroom/energy-resources/what-is-energy

Reading 3: Environmental and Energy Study Institute (EESI). (n.d.). Fossil fuels. http://www.eesi.org/topics/fossil-fuels/description

Reading 4: Banks, F. E. (2015). The world of energy 1: An elementary survey. In Energy and economic theory (pp. 1-85). World Scientific.

Reading 5: Resources for the Future. (n.d.). A framework for understanding energy resources. http://www.rff.org/files/sharepoint/WorkImages/Download/RFF_Resources_156_matrix.pdf

This site illustrates an energy options matrix.

Reading 6: British Petroleum. (2020). BP statistical review of world energy June 2020. https://www.bp.com/content/dam/bp/business-sites/en/global/corporate/pdfs/energy-economics/statistical-review/bp-stats-review-2018-full-report.pdf

Note: See also the Press Release concerning Covid-19's impact on this report's findings. https://www.bp.com/content/dam/bp/business-sites/en/global/corporate/pdfs/news-and-insights/press-releases/bp-statistical-review-of-world-energy-2020-a-pivotal-moment.pdf

Reading 7: Natural Resources Canada (2019) Energy fact book 2019-2020. Annex 1: Units and conversion factors (pp. 121-123). https://www.nrcan.gc.ca/sites/www.nrcan.gc.ca/files/energy/pdf/Energy%20Fact%20Book_2019_2020_web-resolution.pdf

Reading 8: Henderson, D. R. (2008). Demand. In The concise encyclopedia of economics (2nd ed.). Library of Economics and Liberty. http://www.econlib.org/library/Enc/Demand.html

Reading 9: Ehrbar, A. (2008). Supply. In D. R. Henderson, (Ed.), The concise encyclopedia of economics (2nd ed.). Library of Economics and Liberty. http://www.econlib.org/library/Enc/Supply.html

Reading 10: Energy Information Administration. (2000). The U.S. electric power industry infrastructure: Functions and components. In The changing structure of the electric power industry 2000: An update (pp. 9-17). http://www.eia.doe.gov/cneaf/electricity/chg_stru_update/update2000.pdf

Week 2

Reading 11: Kahn, H. (1967). The use of scenarios. In The year 2000: A framework for speculation on the next thirty-three years (pp. 262-264). The Hudson Institute. http://www.hudson.org/research/2214-the-use-of-scenarios

Reading 12: Coates, J. (1996). Herman Kahn: An appreciation. Futures (London), 28(8), 787-789.

Reading 13: Shell International. (2013). Shell scenarios. http://www.shell.com/energy-and-innovation/the-energy-future/scenarios.html

Reading 14: Niles, D. (2009, August 3). The secret of successful scenario planning. Forbes.com. http://www.forbes.com/2009/08/03/scenario-planning-advice-leadership-managing-planning.html

Reading 15: JISC infoNet. (2013). Scenario planning. https://www.jisc.ac.uk/guides/scenario-planning

Reading 16: Smil, V. (2000). Perils of long-range energy forecasting: Reflections on looking far ahead. Technological Forecasting and Social Change, 65(3), 251-264.

Reading 17: Suganthi, L., & Samuel, A. A. (2012). Energy models for demand forecasting—A review. Renewable and Sustainable Energy Reviews, 16(2), 1223-1240.

Week 3

Reading 18: World Coal Association. (2020). Coal facts. https://www.worldcoal.org/coal-facts/

Reading 19: The Engineering ToolBox. (n.d.). Classification of coal. http://www.engineeringtoolbox.com/classification-coal-d_164.html

Reading 20: World Coal Association. (2013). Coal mining. http://www.worldcoal.org/coal/coal-mining/

Reading 21: Australian Coal Association. (2012). Coal & its uses - Global role of coal. http://www.australiancoal.com

Reading 22: Coal Industry Advisory Board (2005). Roadmapping coal's future [Paper]. International Energy Agency. http://www.iea.org

Reading 23: Banks, F. E. (2015). The world of energy 2: An applied survey. In Energy and economic theory (pp. 87-140). World Scientific.

Reading 24: World Energy Council. (2016). World energy resources 2016.

Focus on the Coal chapter, Chapter 1.

Reading 25: Smil, V. (2003). Fossil fuel futures. In Energy at the crossroads: Global perspectives and uncertainties (pp. 181-238). MIT Press.

Reading 26: McKelvey, V. E. (1973). Mineral resource estimates and public policy. In D. A. Brobst, & W. P. Walden (Eds.), United States mineral resources [Geological Survey Professional Paper 820, pp. 9-19]. United States Department of the Interior, Geological Survey. http://pubs.usgs.gov/pp/0820/report.pdf

Reading 27: Barrett, A. G., Hinde, A. L., & Kennard, J. M. (2004). Undiscovered resource assessment methodologies and application to the Bonaparte Basin. https://d28rz98at9flks.cloudfront.net/49306/MS11_Barrett_2004_03_14.pdf

Week 4

Reading 28: Hubbert, M. K. (1956). Nuclear energy and the fossil fuels. In Drilling and production practice, 1956. American Petroleum Institute.

Reading 29: Hubbert, M. K. (1982). Techniques of prediction as applied to the production of oil and gas. In Oil and gas supply modeling: National Bureau of Standards special publication 631, 16-141.

Reading 30: Mian, M. A. (2011). Forecasting product stream. In Project economics and decision analysis (Vol. 1): Deterministic models (2nd ed., pp. 117-149). PennWell.

Reading 31: Adelman, M. A. (2004). The real oil problem. Regulation, 27(1). 16-21.

Reading 32: Society of Petroleum Engineers. (2013). Petroleum. https://energy4me.org/learn-about-energy/energy-sources/petroleum/

Note: Browse through the contents, including Seismic Technology under the Learn About Energy/Technology section.

Reading 33: Society of Petroleum Engineers. (2004). How are oil and natural gas produced?

Reading 34: WorldAtlas.com. (n.d.). Asia map. http://www.worldatlas.com/webimage/countrys/as.htm

This map shows detail on some critical passages for oil trade between the Middle East and Asia.

Reading 35: Hill, F. (2004, September). Energy empire: Oil, gas and Russia's revival. https://fpc.org.uk/wp-content/uploads/2006/09/307.pdf

Note: Please read only the following portions of this report: Introduction (pp. 1-2); The rebound of the Russian Economy (pp. 10-13); The Indispensable Power - Russia in Global Energy Security (pp. 27-31); A Future in Gas (pp. 32-33); The Booms and Busts of Oil (pp. 3 3-35); Capturing the Oil Windfall for the State (pp. 35-37); Oil Production - Possibilities and Constraints (pp. 54-57); and Conclusion (pp. 57-59).

Reading 36: Karp, L. (2017). Empirics and the Hotelling model. In Natural Resources as Capital (pp. 87-102). MIT Press.

Week 5

Reading 37: Geman, H. (2005). The gas market as the energy market of the next decades. In H. Geman (ed.), Commodities and commodity derivatives: Modeling and pricing for agriculturals, metals and energy (pp. 227-249). Wiley & Sons.

Reading 38: Amic, E. (2005). The oil market as a world market. In H. Geman (ed.), Commodities and commodity derivatives: Modeling and pricing for agriculturals, metals, and energy (pp. 201-225). Wiley & Sons.

Reading 39: Banks, F. E. (2015). The world of energy 3: A modern survey. In Energy and economic theory (pp. 141-212). World Scientific.

Reading 40: Hamilton, J. D. (2008, November). Understanding crude oil prices (NBER Working Paper No. 14492). https://www.nber.org/papers/w14492

Reading 41: ELEXON Ltd. (2017). BM reports - market view. https://www.bmreports.com/bmrs/?q=eds/main

Reading 41 gives an overview of electricity data for the United Kingdom wholesale electricity market (note the positive correlation between price and demand) by the Balancing Mechanism Reporting System of NETA (New Electricity Trading Arrangements).

Reading 42: Harris, C. (2006). Liberalisation, deregulation and regulation. In Electricity markets: Pricing structures and economics (pp. 121-140). Wiley & Sons.

Reading 43: Energy Information Administration. (2014). World oil transit chokepoints. https://www.eia.gov/todayinenergy/detail.php?id=18991

Reading 44: Nord Pool. (n.d.). https://www.nordpoolgroup.com

The electricity market operator website for Norway is provided above. To get a sense of the different designs being used globally, take a look at a sampling of other electricity market operators at the following links:

PJM (U.S.): http://www.pjm.com

New England (U.S.): http://www.iso-ne.com

Alberta: http://www.aeso.ca

Australia: http://www.aemo.com.au

United Kingdom: https://www.ofgem.gov.uk/home

Week 6

Reading 45: Emes, D. (2000, October). Economic regulation: Current challenges facing regulators. Paper presented at the meeting of the Economics Society of Calgary, Calgary, AB.

Reading 46: Pirie, M. (n.d.). Privatization. http://madsen-pirie.com/the-things-that-i-do/communicating/privatization/

Reading 47: Crandall, R. W. (2008). Pollution controls. In The concise encyclopedia of economics (2nd ed.). http://www.econlib.org/library/Enc/PollutionControls.html

Reading 48: Michaels, R. J. (2008). Natural gas: Markets and regulation. In The concise encyclopedia of economics (2nd ed.). http://www.econlib.org/library/Enc/NaturalGasMarketsandRegulation.html

Reading 49: Michaels, R. J. (2008). Electricity and its regulation. In The concise encyclopedia of economics (2nd ed.). http://www.econlib.org/library/Enc/ElectricityandItsRegulation.html

Reading 50: Strecker Downs, E. (2000). Implications of china’s energy security activities. In China’s quest for energy security (Monograph Report No. MR1244, pp. 44-52). RAND Corporation. http://www.rand.org/pubs/monograph_reports/MR1244.html

Reading 51: Brennan, T. J., Palmer, K., & Martinez, S. (2001, December). Implementing electricity restructuring: Policies, potholes, and prospects (Discussion Paper 01–62).

Read sections I-IV, pp. 1-22 of Reading 51.

Reading 52: Brennan, T. J., Palmer, K., & Martinez, S. (2001, December). Implementing electricity restructuring: Policies, potholes, and prospects (Discussion Paper 01–62).

Read sections V-VI, pp. 23-34 of Reading 52.

Reading 53: Gellings, C. W., & Yeager, K. E. (2004). Transforming the electric infrastructure. Physics Today, 57(12), 45-51. http://physicstoday.scitation.org/doi/full/10.1063/1.1878334

Week 7

Reading 54: Royalty Review Advisory Panel. (2016, January 29). Alberta at a crossroads: Royalty Review Advisory Panel report. https://open.alberta.ca/publications/9781460126882

Reading 55: Government of Alberta. (2019). Alberta’s royalty framework. http://www.alberta.ca/royalty-overview.aspx#jumplinks-3

Reading 56: Bacon, R. (2001, September 30). Petroleum taxes: trends in fuel taxes (and subsidies) and the implications [Public policy for the private sector, Note No. 240]. https://openknowledge.worldbank.org/handle/10986/11367

Reading 57: Ernst and Young. (2019). Global oil and gas tax guide 2019. https://www.ey.com/en_gl/tax-guides/global-oil-and-gas-tax-guide-2019

Week 8

Reading 58: Darmstadter, J. (2001). The energy-CO2 connection: A review of trends and challenges. In M. A. Toman (Ed.), Climate change economics and policy (pp. 231-242). Resources for the Future Press.

Reading 59: Jaccard, M. (2005). The prospects for clean secondary energy. In Sustainable fossil fuels: The unusual suspect in the quest for clean and enduring energy (pp. 24-34). Cambridge University Press.

Reading 60: Chambers, A. (2003). Bioenergy. In Renewable energy in nontechnical language. (pp. 97-105). Pennwell.

Reading 61: Energy Information Administration. (2017). Nuclear explained. https://www.eia.gov/energyexplained/index.cfm?page=nuclear_home

Reading 62: Jaccard, M. (2005). 4.2 Nuclear. In Sustainable fossil fuels: The unusual suspect in the quest for clean and enduring energy (pp. 101-111). Cambridge University Press.

Reading 63: Jaccard, M. (2005). The usual suspects: Efficiency, nuclear and renewables. In Sustainable fossil fuels: The unusual suspect in the quest for clean and enduring energy (pp. 79-100). Cambridge University Press.

Reading 64: Stanford Woods Institute for the Environment. (2019, September 20). A roadmap to reducing greenhouse gas emissions 50 percent by 2030 [News release]. https://woods.stanford.edu/news/roadmap-reducing-greenhouse-gas-emissions-50-percent-2030

Reading 65: Jaccard, M. (2005). Synopsis and chapter reading guide. In Sustainable fossil fuels: The unusual suspect in the quest for clean and enduring energy. (pp. 351-361). Cambridge University Press.

Supplementary Readings

Week 1 Supp. Rdgs.

Chambers, A. (2003). Bioenergy. In Renewable energy in nontechnical language (pp. 97-105). Pennwell.

Chambers, A. (2003). Introduction. In Renewable energy in nontechnical language (pp. 1-7). Pennwell.

Chambers, A. (2003). Solar power and PVs. In Renewable energy in nontechnical language (pp. 19-29). Pennwell.

Chambers, A. (2003). Wind energy. In Renewable energy in nontechnical language (pp. 61-79). Pennwell.

Chambers, A. (2003). World overview. In Renewable energy in nontechnical language (pp. 11-17). Pennwell.

McAfee, P., Lewis, T. R., & Dale, D. J. (2008). Introduction to economic analysis (v2.1). Creative Commons. https://www.kellogg.northwestern.edu/faculty/dale/ieav21.pdf

McCloskey, D. N. (1985). The budget line/The consumer's choice. In The applied theory of price (2nd ed., Chaps. 1-2). http://www.deirdremccloskey.com/docs/price.pdf

Note: This is a very large file and it is recommended that you use a high speed Internet connection to download it.

Week 2 Supp. Rdgs.

McAfee, P., Lewis, T. R., & Dale, D. J. (2008). Introduction to economic analysis (v2.1). Creative Commons. https://www.kellogg.northwestern.edu/faculty/dale/ieav21.pdf

McCloskey, D. N. (1985). The budget line/The consumer's choice. In The applied theory of price (2nd ed., Chaps. 1-2). http://www.deirdremccloskey.com/docs/price.pdf

Note: This is a very large file and it is recommended that you use a high speed Internet connection to download it.

McCloskey, D. N. (1985). Trade/Using Market Supply and Demand/Measuring Supply and Demand. In The applied theory of price (2nd ed., Chaps. 5-7). http://www.deirdremccloskey.com/docs/price.pdf

Note: This is a very large file and it is recommended that you use a high speed Internet connection to download it.

Week 3 Supp. Rdgs.

There are no readings this week.

Week 4 Supp. Rdgs.

Toman, M. A. (2002, January). International oil security: Problems and policies (Issue Brief 02–04). http://www.rff.org/research/publications/international-oil-security-problems-and-policies

Weidenbaum, M. L. (2004). Global geopolitics of energy. In Business and government in the global marketplace (7th ed., pp. 231-242). Prentice Hall.

Week 5 Supp. Rdgs.

CME Group. (2018). Energy market insights by Jeff White. http://www.cmegroup.com/trading/energy/nymex-energy-options-update.html

Week 6 Supp. Rdgs.

Laffont J. J. (2008). Externalities. In Palgrave Macmillan (Eds.), The New Palgrave Dictionary of Economics. Palgrave Macmillan. https://link.springer.com/referenceworkentry/10.1057/978-1-349-95121-5_126-2

Note: This reading requires a free account be created with the publisher.

Week 7 Supp. Rdgs.

There are no readings this week.

Week 8 Supp. Rdgs.

American Wind Energy Association (AWEA) website: http://www.awea.org/

Darvill, A. (2016). Energy resources. http://home.clara.net/darvill/altenerg/index.htm

EIA. (2020). Annual energy outlook 2020. https://www.eia.gov/outlooks/aeo/

EIA. (n.d.). Renewable and alternative fuels. http://www.eia.gov/renewable/

International Atomic Energy Agency (IAEA) website: http://www.iaea.org/

MacCracken, M. C. (November 2003). Uncertainties: How little do we really understand? Paper presented at the Science and Technology Conference Honoring Neal Lane, Rice University.

Note: This paper provides a thorough and interesting discussion on what is and is not uncertain about climate change science.

Nisbet, M. (2006, June 1). Going nuclear: Frames and public opinion about atomic energy. Skeptical Inquirer [Special Article]. http://www.csicop.org/specialarticles/show/going_nuclear_frames_and_public_opinion_about_atomic_energy/

Resilience.org. (2005, April 1). Study: Ethanol production consumes six units of energy to produce just one. http://www.resilience.org/stories/2005-04-01/study-ethanol-production-consumes-six-units-energy-produce-just-one

Solar Electric Power Association (SEPA) website: http://www.solarelectricpower.org

United Nations Framework Convention on Climate Change (UNFCCC) website: http://unfccc.int/2860.php

United Nations Environment Programme (UNEP) website: http://www.unep.org/

U.S. Nuclear Regulatory Commission. (2013). Backgrounder on the Three Mile Island accident. http://www.nrc.gov/reading-rm/doc-collections/fact-sheets/3mile-isle.html